Anmerkungen:
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments October 16, 2012 erstellt
Beschreibung:
This paper explores how financial frictions and financial shocks can contribute to jobless recoveries. We incorporate financial frictions and financial shocks into a real business cycle model in which firms determine not only their investment in capital and employment of workers, but also capital-utilization rates and hours worked per worker. In the model, firms' investment and wage payment are restricted by a borrowing constraint, and the tightness of the constraint is determined by both financial conditions and the amount of collateral - capital stock. In a recovery, in response to a positive TFP shock, firms increase their capital utilization, but whether they invest more in capital depends on how fast financial conditions improve. If the financial conditions improve slowly, firms keep their investment low. This leads to a persistent shortage of capital and a jobless recovery